Insurance: is like a parachute - you hope you never have to use it, but it's nice to know it's there just in case you accidentally jump out of a perfectly good airplane.
Premium: An insurance premium is like a monthly ransom payment to your insurance company. You're essentially telling them, "Please don't let anything bad happen to me, and I'll keep giving you my money.
Deductible: An insurance deductible is like a "You break it, you buy it" policy for your own body. It's like saying, "Hey, if I accidentally run into a tree or trip over my own shoelaces, I'll pay the first few thousand dollars, and you can cover the rest.
Co-pay: A fixed amount an individual must pay out of pocket for a particular medical service or treatment, usually at the time of service.
Co-insurance: A cost-sharing arrangement where the insured and the insurance company each pay a percentage of the total cost of covered losses or damages.
Policyholder: The individual who owns an insurance policy.
Insurer: The insurance company that provides coverage to the policyholder.
Claim: A request made by the policyholder to the insurance company for payment for losses or damages covered under the policy.
Underwriting: The process by which an insurance company determines the risk associated with insuring a particular individual or entity.
Actuary: A professional who uses statistical and financial data to calculate risks and determine insurance rates.
Risk: The likelihood that a particular event or outcome will occur, resulting in financial loss or damage.
Liability: Legal responsibility for losses or damages, often used in the context of auto insurance or property insurance.
Property insurance: Insurance that protects the policyholder against damage to their property, such as a home or car.
Health insurance: Insurance that provides coverage for medical expenses, including doctor visits, hospital stays, and prescription drugs.
Life insurance: Insurance that provides a payout to the policyholder's beneficiaries upon the policyholder's death.
Disability insurance: Insurance that provides income replacement in the event that the policyholder is unable to work due to a disability.
Long-term care insurance: Insurance that provides coverage for long-term care services, such as nursing home care or in-home care.
Umbrella insurance: Insurance that provides additional liability coverage beyond the limits of other insurance policies, such as auto or home insurance.
Insurance policy: The legal document that outlines the terms and conditions of an insurance contract between the policyholder and the insurance company.
Policy limit: The maximum amount that an insurance company will pay for covered losses or damages.
Exclusions: Situations or circumstances that are not covered under an insurance policy.
Riders: Additional coverage options that can be added to an insurance policy for an additional cost.
Endorsement: A formal amendment to an insurance policy that changes the terms or coverage provided.
Renewal: The process by which an insurance policy is extended or continued for another term.
Cancelation: The termination of an insurance policy before the end of its term.
Non-renewal: The decision by an insurance company not to renew an insurance policy at the end of its
Risk management: The practice of identifying and minimizing risks to reduce the likelihood of financial loss or damage.
Reinsurance: The process by which an insurance company transfers some or all of the risk associated with insuring a particular individual or entity to another insurance company.
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Self-insurance: The practice of setting aside funds to cover potential losses or damages instead of purchasing insurance.
Certificate of insurance: A document that provides proof of insurance coverage.
Indemnity: Compensation paid to the policyholder for covered losses or damages.
Loss control: The practice of implementing measures to reduce the likelihood of losses or damages.
Salvage: Property that has been damaged or destroyed and is now the property of the insurance company after the policyholder has been compensated.
Subrogation: The right of an insurance company to recover funds from a third party that was responsible for the losses or damages covered under the policy.
Insurance score: A numerical rating that is used by insurance companies to assess the risk associated with insuring a particular individual or entity.
Act of God: An event that is caused by natural forces, such as a hurricane or earthquake, that is beyond the control of humans.
Actual cash value: The value of an item at the time of loss, taking into account its age, condition, and other factors.
Replacement cost: The cost to replace an item with a similar new item, without any deduction for depreciation.
Incontestability: A provision in an insurance policy that prevents the insurance company from contesting the validity of the policy after a certain period of time has passed.
Insurable interest: The legal or financial interest that an individual or entity has in the insured property or person, which provides a legitimate reason for purchasing insurance.
